Bandhan Bank shares fall 5% ahead of Q4 results; here's earnings preview

Bandhan Bank Ltd fell nearly 5 per cent in Thursday's trade, snapping a five-day winning run, ahead of its March quarter results on Friday. The sock fell 4.74 per cent to hit a low of Rs 180.80 on BSE. With this, the private lender snapped a five-day winning run. The bank is seen reporting a marginal fall in year-on-year (YoY) Q4 profit.

Axis Securities expects Bandhan Bank to report 2.8 per cent YoY drop in net profit at Rs 785 crore for the March quarter compared with Rs 808 crore in the same quarter last year, as other income is seen falling 10.8 per cent YoY. NII is seen rising 9.3 per cent to Rs 2,701 crore from Rs 2,472 crore YoY. Pre-provision operating profit is seen falling 1.6 per cent YoY to Rs 1,766 crore. Provisions are seen rising 6 per cent sequentially but fall 1.3 per cent YoY to Rs 725 crore.

"Seasonally strong quarter for MFI likely to have supported advances growth; Deposit growth picks up. Margins are likely to remain largely stable despite increased cost of funding to reflect the benefit of re-pricing in the EEB portfolio. Credit costs likely to hover at 250 bps," it said.

Nuvama sees profit at Rs 800 crore, down 1 per cent YoY. It sees NII rising 7 per cent YoY to Rs 2,640 crore. Net interest margin (NIM) is seen t 7.15 per cent against 7.20 per cent in December and 7.30 per cent in the corresponding quarter last year.

"We expect Bandhan Bank to report a healthy quarter. The recent additions to the KMP is expected to drive the business performance. Further, the bank now comprises of two EDs, exceeding the regulatory requirement of having a minimum of one ED, which reinforces confidence in its operations," said Motilal Oswal Securities.

Bandhan Bank in its Q4 update said its gross advances grew 17.8 per cent. Its deposit base stood at Rs 1.35 lakh crore, up 25.1 per cent YoY. CASA deposits grew faster at 18.1 per cent YoY.